An OC cannot make rules that discriminate against lot owners

A rule of the OC was declared invalid on the basis that it was discriminatory in Metro Real Estate Services Pty Ltd v Owners Corporation No 1 – PS511424U [2013] VCAT 2138. The rule excluded owners and occupiers from the common area gymnasium, swimming pool and sauna unless the owner or occupier had first undertaken an induction for the recreation area. The induction sessions were only offered on Monday mornings. This effectively excluded occupiers of short term serviced apartments in the development from using the recreation facilities. The Tribunal held that the rule was discriminatory against the owners of the serviced apartments and was therefore invalid.

The Tribunal also reinforced that the OC Committee does not have the power to make, amend or add to the rules of the OC. That can only be done by a special resolution of the lot owners.

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